II
Calendar No. 674
109th CONGRESS
2d Session
S. 1129
IN THE SENATE OF THE UNITED STATES
May 26, 2005
Mr. Lugar (for himself, Mr. Hagel, Mr. Martinez, Mrs. Clinton, Mr. Stevens, Mr. Alexander, Mr. Cochran, Mr. Coleman, Mr. Obama, Mr. Thune, Mr. Isakson, and Mr. Biden) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations
December 8, 2006
Reported by Mr. Lugar, with an amendment
Strike out all after the enacting clause and insert the part printed in italic
A BILL
To provide authorizations of appropriations for certain development banks, and for other purposes.
Short title
This Act may be cited as the
Development Bank Reform and
Authorization Act of 2005
.
Findings
Congress makes the following findings:
The United States has strong national security and humanitarian interests in alleviating poverty and promoting development around the world.
The World Bank, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank leverage the resources that the United States and other donors can devote to such goals.
Contributions from the United States and other donors to the multilateral development banks must be well managed so that the mission of such banks is fully realized and not undermined by corruption. Corruption can influence important bank decisions on projects and contractors and misuse of funds can inflate project costs, cause projects to fail, undermine development effectiveness, and erode public confidence in institutions.
Officials of the World Bank have identified corruption as the single greatest obstacle to economic and social development. Corruption undermines development by distorting the rule of law and weakening the institutional foundation on which economic growth depends.
Officials of the World Bank have determined that the harmful effects of corruption are especially severe on the poor, who are hardest hit by economic decline, are most reliant on the provision of public services, and are least capable of paying the extra costs associated with corruption, bribery, fraud, and the misappropriation of economic privileges.
In hearings before the Foreign Relations Committee of the Senate, it was demonstrated that—
significant multilateral development bank funding has been lost to corruption and it is difficult to ascertain such amount precisely, in part because the multilateral development banks have not implemented procedures to calculate such amounts, either in the aggregate or on a country basis;
the multilateral development banks are taking action to address fraud and corruption but additional measures remain to be carried out;
the capability of anticorruption mechanisms, including investigations, reporting, and disposition, are not consistent among the multilateral development banks and divergences in anticorruption policies exist that may hinder coordination on fighting corruption;
weaknesses in whistleblower and reporting policy and practice exist at the multilateral development banks, to varying degree, that impede antifraud and anticorruption efforts;
greater transparency and investigative independence is necessary to provide effective development aid;
the Secretary of the Treasury encourages anticorruption efforts at the multilateral development banks and reviews loans made by such banks, however, the United States has limited ability to investigate the misuse of funds from such banks; and
in some cases, the countries bearing the cost of prosecuting corruption related to the multilateral development banks are the countries that can least afford such costs, for example, the Government of Lesotho incurred considerable expense, despite competing priorities, such as those arising from an HIV/AIDS rate of more than 25 percent in that country, to investigate and prosecute fraud and corruption related to a project that received funding from the World Bank and the World Bank did not contribute money towards the prosecution or investigation.
The Government Accountability Office issued a report in 2001 that evaluated the external audit reporting of the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank and a report in 2000 that evaluated the internal controls of the World Bank, and recommended measures to strengthen such audit reporting and controls.
The International
Financial Institutions Advisory Commission (also known as the Meltzer
Commission
) concluded in 2000, among other things, that—
pressure to lend for lending’s sake is built into the structure of the multilateral development banks;
although several of the multilateral development banks recognize this problem and have called attention to the need for change, there is, at most, weak counterbalance to the pressure to lend; and
the multilateral development banks’ systems for project evaluation, performance evaluation, and project selection must be improved, and that such evaluation should be a repetitive process spread over time, including many years after final disbursement of funds.
Definitions
In this Act:
Appropriate congressional committees
The term appropriate congressional committees means the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives.
Group of 7
The term Group of 7 means Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
Group of 8
The term Group of 8 means the Group of 7 and Russia.
Multilateral development banks
The term multilateral development banks means the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, the World Bank, and any subsidiary or affiliate of such institutions.
Person
The term person includes a government, a government-controlled entity, a corporation, a company, an association, a firm, a partnership, a society, and a joint stock company, as well as an individual.
Secretary
Except as otherwise provided, the term Secretary means the Secretary of the Treasury.
World Bank
The term World Bank means the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, and the Multilateral Investment Guarantee Agency and any subsidiary or affiliate of such institutions.
Anticorruption proposal and report
Proposal
The Secretary shall develop a proposal for a mechanism or program, that includes consideration of an anticorruption trust and of a set aside of loans or grants, that could be established at the multilateral development banks—
to assist poor countries in investigations and prosecutions of fraud and corruption related to a loan, grant, or credit of the multilateral development banks;
to provide the means for hands-on prosecutorial training and education in order to better equip recipient countries to fight fraud and corruption; and
to build the capacity of agencies in recipient countries to prevent fraud and corruption.
Report
Not later than September 1, 2006, the Secretary shall submit to the appropriate congressional committees a report on the proposal required by subsection (a).
Promotion of policy goals at multilateral development banks
Title XV of the International Financial Institutions Act (22 U.S.C. 262o et seq.) is amended by adding at the end the following:
Promotion of policy goals
Definitions
In this section:
Appropriate congressional committees
The term appropriate congressional committees means the Committee on Foreign Relations of the Senate and the Committee on Financial Services of the House of Representatives.
Multilateral development banks
The term multilateral development banks means the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank, the World Bank, and any subsidiary or affiliate of such institutions.
Person
The term person includes a government, a government-controlled entity, a corporation, a company, an association, a firm, a partnership, a society, and a joint stock company, as well as an individual.
Secretary
Except as otherwise provided, the term Secretary means the Secretary of the Treasury.
World Bank
The term World Bank means the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, and the Multilateral Investment Guarantee Agency, and any subsidiary or affiliate of such institutions.
Transparency
Publication of statements
In general
Not later than 60 calendar days after a meeting of the board of directors of a multilateral development bank, the Secretary—
shall provide for publication on the Web site of the Department of the Treasury of—
the justification for each vote by the United States Executive Director at the multilateral development bank on any policy, loan, grant, or credit before the board of directors of the bank; and
any official position statement issued at the meeting by such United States Executive Director at the bank concerning an institutional policy or strategy of the bank, including operational policies, anticorruption policies, and sector or thematic strategies that were subject to public consultation or public comment period; and
should provide for publication on the Web site of the Department of the Treasury of any official position statement issued at the meeting by such United States Executive Director at the bank concerning a lending, grant, or guarantee operation which would result or be likely to result in significant social or environmental effects.
Redacted material
The Secretary may redact material from the material to be made available under subparagraph (A) if the Secretary determines such material is too sensitive for public distribution.
Information disclosure
The Secretary shall instruct the United States Executive Director at each multilateral development bank to use the voice and vote of the United States to make available to the public all draft country strategies not less than 120 calendar days prior to consideration of such strategies by the board of directors of the bank.
Strengthening Development Bank administration
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank of, and use the voice and vote of the United States to achieve at the bank, the following United States policy goals:
Each multilateral development bank should require annual mandatory financial disclosure of any possible or apparent conflict of interest by each employee of the bank, consultant to the bank, or independent expert to the bank whose duties and responsibilities include, through decision or the exercise of judgment, the taking of any action regarding—
contracting or procurement;
developing, administering, managing, or monitoring loans, grants, programs, projects, subsidies, or other conferred financial or operational benefits provided by the bank; or
evaluating or auditing any project, program or entity.
Each multilateral
development bank should reform the pressure to lend
incentive
structure at such bank by—
holding management accountable for program and project effectiveness;
linking project design and implementation and results to staff performance appraisals; and
requiring that staff increase its focus on monitoring existing loans.
Each multilateral development bank should continue strengthening whistleblower policies at the bank to the level of emerging standards reflected in national and international law in the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201 et seq.), and the Inspector General Act of 1978 (5 U.S.C. App.).
Each multilateral development bank should continue strengthening voluntary disclosure programs for firms and individuals participating in projects financed by such banks, to the level of emerging best-practices as expressed in the Department of Defense Guidelines for Voluntary Disclosure and the audit policy of the Environmental Protection Agency.
All loan, credit, guarantee, and grant documents and other agreements with borrowers should include provisions for the financial resources and conditionality necessary to ensure that a person who obtains financial support from a multilateral development bank complies with applicable bank policies and national and international laws in carrying out the terms and conditions of such documents and agreements, including bank policies and national and international laws pertaining to the comprehensive assessment and transparency of the activities supported, such as those concerning public consultation, access to information, public health, safety, and environmental protection.
Each multilateral development bank should develop, if it has not already done so, clear procedures setting forth a clear and uniform definition of sanctionable misconduct and the circumstances under which a person will be barred from receiving a loan, contract, grant, or credit from such bank, should make such procedures available to the public, and should make the identities of such person available to the public.
Each multilateral development bank should coordinate policies consistent with best practices across international institutions on issues including common definitions of fraud and corruption, debarment procedures, procurement and consultant guidelines, and fiduciary standards so that a person that is debarred by one multilateral development bank is ineligible to conduct business with the other multilateral development banks during the specified ineligibility period.
Anticorruption practices
Voice and vote
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank of the United States anticorruption policy described in paragraph (2)(A), and to use the voice and vote of the United States to achieve such policy at the bank.
Anticorruption policy
In general
The anticorruption policy referred to in paragraph (1) is a policy that requires a person (including beneficiaries of investment loans and grants made by a multilateral development bank), as well as a bidder, supplier, or contractor under a contract financed by a multilateral development bank to observe the highest standard of ethics during the procurement and exception of such a contract. Such a standard of ethics should be consistent with those in the Foreign Corrupt Practices Act of 1977 (Public Law 95–213; 91 Stat. 1496) and in section 27 of the Office of Federal Procurement Policy Act (41 U.S.C. 423) and prohibit coercive practices, collusive practices, corrupt practices, and fraudulent practices.
Definitions
In this paragraph:
Coercive practice
The term coercive practices means harming or threatening to harm, directly or indirectly, persons, or their property, to influence the issuance, receipt, execution, or performance of any contract, loan, credit, grant, or other conferred financial or operational benefit provided by each multilateral development bank.
Collusive practice
The term collusive practices means a scheme or arrangement between 2 or more bidders, with or without the knowledge of the Borrower, designed to establish bid prices at artificial, noncompetitive levels.
Corrupt practice
The term corrupt practice means the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence the action of a public official (including staff of a multilateral development bank) in the issuance, receipt, execution, or performance of any contract, loan, credit, grant, or other conferred financial or operational benefit by each multilateral development bank.
Fraudulent practice
The term fraudulent practice means a misrepresentation or omission of facts in order to influence the issuance, receipt, execution, or performance of any contract, loan, credit, grant, or other conferred financial or operational benefit by each multilateral development bank.
Strengthening Development Bank auditing and procurement
In general
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank of, and use the voice and vote of the United States to achieve at the bank, the United States policy goal that each multilateral development bank, that has not already done so, should—
establish an independent investigation office and an internal auditing function that is free from interference in determining the scope of investigations and internal auditing, performing work, and communicating results, and that regularly report to the board of directors of the bank;
adopt and implement an internationally recognized internal controls framework, allocate adequate staffing and budget to auditing, require external auditor attestations of internal controls and of external financial reporting, and conduct forensic audits of loans where fraud is suspected;
develop and formally adopt a procedure for the confidential voluntary reporting of misconduct by individuals and firms participating in bank-financed projects; and
adopt, implement, and apply consistently internationally accepted procurement practices.
Corruption Investigation Information Center
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank of, and use the voice and vote of the United States to achieve at the bank, the United States policy goal that the banks should create a Corruption Investigation Information Center to be staffed by the banks and charged with maintaining a relational investigative database for use by investigators from all the banks. Such database should contain forensic, financial, and transnational information pertaining to projects finance by a bank that is developed as a result of investigations within a bank, for use by all banks as a means to taking collective enforcement action against entities, individuals, and officials engaged in corruption in connection with a project financed by a bank.
Independent investigative function
In general
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank of, and use the voice and vote of the United States to achieve at the bank, the establishment of an independent investigative function to investigate corruption in their operational activities.
Report
Each year, the United States Executive Director of each multilateral development should submit to the Secretary a report on—
the status of the investigative function at the Director’s bank;
the Director’s views as to whether the investigative function remains operationally independent and capable of carrying out its mission; and
what policies, practices, or procedures are needed to strengthen the investigative function at each bank.
Compensation for people negatively affected by Development Bank projects
Voice and vote
The Secretary shall instruct the United States Executive Director at each multilateral development bank to use the voice and vote of the United States to achieve the policy described in paragraphs (2) and (3) at the bank.
Compensation policy
In consultation with various stakeholders including affected communities, each multilateral development bank should develop a compensation policy which would apply to each project where compensation, including resettlement or rehabilitation assistance, is to be provided to persons adversely impacted by the project. The policy should require the establishment and financing of an independent and transparent mechanism that is responsive to affected communities which will receive and resolve complaints from a person who is eligible for compensation if such person finds that the compensation is either inadequate or improperly implemented.
Report on resettlement
Each multilateral development bank should publish in its annual report the number of people that have been resettled by projects funded by such bank during the previous fiscal year and report on the rehabilitation status of resettled people in relevant project documents.
Evaluation
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank of, and use the voice and vote of the United States to achieve at the bank, the following goals:
Each multilateral development bank should make the results of project and nonproject operations evaluations available to the public, including through the Internet Web site of the bank. Such information should include data on the number of projects evaluated per year as a percentage of total projects carried out.
Each multilateral development bank should require that all loans, grants, credits, guarantees, policies, and strategies, including budget support, prepared by the bank include specific outcome and output indicators to measure results, and that the indicators and results be published periodically during the execution and at the completion of the appropriate project or program, and at the number of years after such completion determined to be appropriate for such loan, grant, credit, policy, or strategy.
Each multilateral development bank should promote rigorous independent evaluation of projects and policies to ensure that the intent of such projects and policies is realized. Each bank should encourage applicants and borrowers to agree, in consultation with an independent evaluator or evaluators, to design projects to facilitate the evaluation of outcomes. Rigorous independent evaluations should measure the impact on those served by a loan, grant, or credit and should have a carefully constructed comparison group to help measure the impacts of the loan, grant, or credit.
Qualification policy
Voice and vote
The Secretary shall instruct the United States Executive Director at each multilateral development bank to encourage the bank to implement the qualification policy for borrowing countries described in paragraph (2), and use the voice and vote of the United States to achieve such policy at each bank.
Qualification policy for borrowing countries
The qualification policy for borrowing countries referred to in paragraph (1) is a policy that requires, in addition to the standards in effect on the date of the enactment of the Development Bank Reform and Authorization Act of 2005, each multilateral development bank to qualify a country for budget support, adjustment lending, policy lending for nonproject loans, grants, or credits, or other loans directed to the country’s budget based on transparency in procurement and fiduciary requirements and requiring the borrowing country to make its budget available to the public before funds are disbursed to that country.
Microfinance and business development
The Secretary shall inform the management of each multilateral development bank and the public that it is the policy of the United States to encourage microfinance services for the poor and very poor (as that term is defined in section 259 of the Foreign Assistance Act of 1961 (22 U.S.C. 2214a)), and micro-, small-, and medium-enterprise development programs, because of the merit of these programs in addressing poverty and economic growth, particularly in a country where the government of such country ranks poorly in the World Bank Institute’s governance indicators.
Extractive industry transparency
Requirements for resource assistance
The Secretary shall instruct the United States Executive Director at each multilateral development bank to inform the bank and the public and use their voice and vote of the United States so that any investment, loan, credit, grant, or guarantee made by a multilateral development bank for extraction or export of gas, oil, minerals, timber, or other natural resources should not be provided unless the recipient government has in place, or is taking the necessary steps to establish prior to June 2008, functioning systems for—
accurately accounting for all revenues received by a borrowing government from a person and all payments to a government in connection with the extraction or export of natural resources, such as gas, oil, oil shale, tar sands, coal, any metal, mineral, or timber;
the independent auditing of such payments and such revenues by a credible, functionally independent auditor applying international auditing standards, and making publicly available the auditor’s findings and recommendations;
verifying government receipts against company payments made by each person, including widespread dissemination of annual payment information in a manner that does not create competitive disadvantage or disclose proprietary information;
establishing a legal framework for disclosure of payments from a person or contracts with a person and outlining the level and extent of disclosure or payment information by persons in the extractive industries;
making available to the public all contracts between the government of such country or any person owned or controlled by such government, and any person that is engaged in the extraction or export of natural resources through a project or program supported by a bank, unless such disclosure would cause substantial competitive harm;
adopting internal control and audit procedures for handling resource revenue receipts through internal government accounts or special fund arrangements and clearly describing and disclosing to the public the spending of such receipts from such accounts or funds;
establishing a national audit body or equivalent organization which is independent of the executive, that would provide timely reports for the legislative, and public on the financial integrity of government accounts; and
applying the revenue transparency approach described in this paragraph equally and fully to all extractive companies operating in the country, including State-owned entities.
Requirements for sponsors of resource projects
The Secretary shall inform the management of each multilateral development bank and the public that it is the policy of the United States that any multilateral development bank assistance, including any investment, loan, or guarantee, provided to public or private sector sponsors for the extraction or export of natural resources should be provided only if—
the government of the country has in place or is taking necessary steps to establish the functioning systems described in subparagraphs (A) through (H) of paragraph (1);
the sponsors of such projects publicly disclose payments made to the government of such country in accordance with the legal framework described in subparagraph (D) of paragraph (1); and
agree to contract disclosure as described in subparagraphs (D) and (E) of paragraph (1).
Compliance with transparency guidelines prior to approval of assistance
In furtherance of the policy described in paragraphs (1) and (2), not later than 3 years after the date of the enactment of the Development Bank Reform and Authorization Act of 2005, the Secretary shall inform the management of each multilateral development bank and the public that it is the policy of the United States to oppose any secondary or follow-up investment, loan, credit, grant, or guarantee if the recipient government does not have in place the systems described in subparagraphs (A) through (H) of paragraph (1).
Report to Congress
Not later than June 1, 2006, and annually thereafter, the Secretary of the Treasury shall submit to Congress and make available on the Web site of the Department of the Treasury, a report that includes, for each multilateral development bank, the following:
A description of the assistance approved during the previous fiscal year for a project or program as set out in paragraph (1) or (2).
An assessment of the extent to which each country receiving such assistance is implementing a program that complies with the policy set out in paragraph (1), based on all relevant information including the views of the international institutions and of civil society organizations.
An assessment of the extent to which a person that received such assistance has disclosed payments to governments and agreed to contract disclosure, as described in subparagraphs (D) and (E) of paragraph (1).
.
Sense of Congress on the Extractive Industry Transparency Initiative and G–8 agreements
It is the sense of Congress that—
the President should continue promoting the Transparency Initiative of the Group of 8 and the Extractive Industry Transparency Initiative as approaches to help ensure that the revenues from extractive industries contribute to sustainable development and poverty reduction, as such initiatives are voluntary initiatives intended—
to promote greater transparency of developing country government revenues and expenditures, procurement, concession-granting systems; and
to work to recover stolen assets and enforce antibribery and anticorruption laws; and
the United States should strongly support and encourage the carrying out of the agreements of the Group of 8 made at the 2005 Summit at Gleneagles, Scotland, at the 2004 Summit at Sea Island, Georgia, and at the 2003 Summit at Evian, France, to promote transparency in public budgets, including revenues and expenditures, government procurement, public concessions, the granting of licenses with special emphasis on countries with large extractive industries sectors, including the agreements made at the Summit at Gleneagles which called on the World Bank and other multilateral development banks to implement the Extractive Industries Transparency Initiative, and at the Summit at Sea Island which specifically—
support the efforts of the Public Expenditure and Financial Accountability program at the World Bank to help developing countries achieve accountability in public finance and expenditure and to extend harmonized approaches to the assessment and reform of their public financial, accountability, and procurement systems;
invite developing countries to prepare anticorruption action plans to implement the commitments of such countries in regional and international conventions; and
achieve agreement on full disclosure of the World Bank International Development Association’s Country Policy and Institutional Assessment results, with disclosure to begin with the 2005 ratings.
Contributions to multilateral development banks
World Bank
The International Development Association Act (22 U.S.C. 284 et seq.) is amended by adding at the end the following new section:
Fourteenth replenishment
Contribution authority
In general
The United States Governor of the Association is authorized to contribute on behalf of the United States $2,850,000,000 to the fourteenth replenishment of the resources of the Association.
Subject to appropriations
Any commitment to make the contribution authorized by paragraph (1) shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts.
Authorization of appropriations
For the contribution authorized by subsection (a), there are authorized to be appropriated, without fiscal year limitation, $2,850,000,000 for payment by the Secretary of the Treasury.
.
African Development Bank Fund
The African Development Fund Act (22 U.S.C. 290g et seq.) is amended by adding at the end the following new section:
Tenth replenishment
Contribution authority
In general
The United States Governor of the Fund is authorized to contribute on behalf of the United States $407,000,000 to the tenth replenishment of the resources of the Fund.
Subject to appropriations
Any commitment to make the contribution authorized by paragraph (1) shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts.
Authorization of appropriations
For the contribution authorized by subsection (a), there are authorized to be appropriated, without fiscal year limitation, $407,000,000 for payment by the Secretary of the Treasury.
.
Asian development Fund of the Asian Development Bank
The Asian Development Bank Act (22 U.S.C. 285 et seq.) is amended by adding at the end the following new section:
Eighth replenishment
Contribution authority
In general
The United States Governor of the Bank is authorized to contribute on behalf of the United States $461,000,000 to the eighth replenishment of the resources of the Fund.
Subject to appropriations
Any commitment to make the contribution authorized by paragraph (1) shall be effective only to such extent or in such amounts as are provided in advance in appropriations Acts.
Authorization of appropriations
For the contribution authorized by subsection (a), there are authorized to be appropriated, without fiscal year limitation, $461,000,000 for payment by the Secretary of the Treasury.
.
Reports to Congress
Reports from the government accountability Office
Sense of Congress on access to information
It is the sense of Congress that—
to evaluate the compliance of the multilateral development banks with the policies of the United States described in section 1505 of the International Financial Institutions Act, as added by section 5 of this Act, and to prepare the reports required by this section, the Comptroller General of the United States should have full and complete access to financial information relating to the multilateral development banks, including information related to the performance, accountability, oversight, financial transactions, organization, and activities of the multilateral development banks;
the Secretary should seek to conclude memorandums of understanding with the multilateral development banks to ensure that the United States will have access to documents related to information described in subparagraph (A); and
the Secretary of the Treasury should facilitate access by the Comptroller General of the United States to the financial information described in subparagraph (A).
Report on reforms at the multilateral development banks
Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall prepare and submit to the appropriate congressional committees a report on the extent of the implementation of the reforms called for by the Group of 8 or by the Group of 7, starting with the 2000 Okinawa Summit, as delineated in communiqués, chairman’s statements, and other official communication through the summit or finance ministerial processes of the Group of 8 or the Group of 7.
Report on financial structure of the world bank
Not later than 2 years after the date of enactment of this Act, the Comptroller General of the United States shall prepare and submit to the appropriate congressional committees a report on the appropriateness of the World Bank’s equity-loan ratio to best address financial risks and development goals.
Report on effectiveness of multilateral development banks
Not later than 3 years after the date of the enactment of this Act, the Comptroller General of the United States shall—
conduct a review of the effectiveness of each multilateral development bank in achieving the mission of such bank as set out in the articles of agreement of such bank, specifically poverty reduction and economic development; and
submit to the appropriate congressional committees a report on the findings of the review.
Report on consistency of multilateral development bank practices with statutory policies
Not later than 3 years after the date of the enactment of this Act, the Comptroller General of the United States shall prepare and submit to the appropriate congressional committees a report on the extent to which the practices of the multilateral development banks are consistent with the policies of the United States, as expressly contained in Federal law applicable to the multilateral development banks.
Reports on implementation of policy goals
Initial report
Not later than September 1, 2006, the Secretary shall submit a report to the appropriate congressional committees that describes the actions taken by the United States Executive Director at each multilateral development bank to implement the policy goals described in this Act and the amendments made by this Act and any other actions that should be taken to implement such goals.
Updates
The Secretary shall submit to the appropriate congressional committees an annual update of the report required by paragraph (1) for each of the fiscal years 2007 and 2008.
December 8, 2006
Reported with an amendment